Effects of Sesame production on economic growth in Nigeria (1981 to 2021)

Abstract

This study assessed the effects of Sesame production on economic growth in Nigeria. Time series data from the Central Bank of Nigeria Statistical Bulletin (CBN Statistics) and Food and Agriculture Organization Statistics (FAOSTAT) spanning from 1981 to 2021 were used. After conducting the Augmented Dickey Fuller (ADF) and Phillips Perron unit root tests, the variables were all found to be stationary at first difference for Phillips Perron test and a mixture of level and first difference for ADF test.  Ordinary Least Squares regression model results revealed that there was a significant positive relationship (p < 0.01) between sesame output and Real GDP over the period under study. Consequently, the exchange rate had an inverse significant relationship with real GDP at (p<0.05). Furthermore, there was a significant positive relationship between agricultural GDP and sesame output in Nigeria. The study concludes that growth of the sesame industry in Nigeria will boost economic growth and contribute to the growth of the agricultural sector contribution to the Nigerian GDP. Policies necessary to improve the production of sesame are therefore recommended as a way to improve economic growth in the country.